Some thoughts for founders raising pre-seed rounds that I notice get you funds
raised fast:
1. Raise right amount: Make sure you raise enough to survive long enough to get
the numbers to do your next round. This stage is all about going from an idea to
showing (a) a product; (b) that some people want; and (c) has shown signs of
making some money. Typically this is at least £150k and often closer to £300k.
Any less and there is a very very real chance you'll run out of runway.
2. Valuation: £1-3m. Go any higher and you need to be a really proven founder,
or have proper traction.
3. The best way to run a slick, quick round, is to line up about 30 active and
important angels in the city you are in and get to investment stage with a few
of them. Important angels are best - those who can add execution value and act
as a signal to others. Look for angels who know VCs. That takes the pressure off
ever so slightly next round.
4. This stage is about you, the market and the story. But the best startups also
have some traction. Whether it is running some Google ads and running a manual
sales process (which you will now build a product to automate), or
community-building - something is better than nothing.
5. Get warm intros if you can. It just helps.
Any others I've missed?
Posted by Ibrahim Khan on LinkedIn
link: linkedin.com/in/mibrahimkhan
raised fast:
1. Raise right amount: Make sure you raise enough to survive long enough to get
the numbers to do your next round. This stage is all about going from an idea to
showing (a) a product; (b) that some people want; and (c) has shown signs of
making some money. Typically this is at least £150k and often closer to £300k.
Any less and there is a very very real chance you'll run out of runway.
2. Valuation: £1-3m. Go any higher and you need to be a really proven founder,
or have proper traction.
3. The best way to run a slick, quick round, is to line up about 30 active and
important angels in the city you are in and get to investment stage with a few
of them. Important angels are best - those who can add execution value and act
as a signal to others. Look for angels who know VCs. That takes the pressure off
ever so slightly next round.
4. This stage is about you, the market and the story. But the best startups also
have some traction. Whether it is running some Google ads and running a manual
sales process (which you will now build a product to automate), or
community-building - something is better than nothing.
5. Get warm intros if you can. It just helps.
Any others I've missed?
Posted by Ibrahim Khan on LinkedIn
link: linkedin.com/in/mibrahimkhan